Auddia Announces Continued Favorable 30-day Retention and the Launch of Commercial Subscriptions

Rhea-AI Summary

Auddia (NASDAQ: AUUD) reported continued improvement in user retention metrics for its faidr platform. The company's 30-day retention rate exceeded 20% throughout Q4 2023, reached nearly 25% in January, and is expected to surpass 25% in February 2024.

The company recently integrated an advanced subscription platform into faidr to optimize subscription conversion and revenue. This platform enables fine-tuning of pricing, messaging, and offerings to maximize subscription conversions. Auddia plans to provide guidance on subscription revenue growth by the end of Q1 2024, as it continues to implement product, marketing, and subscription conversion optimizations.

Positive

• 30-day user retention rate consistently above 20% in Q4 2023
• Retention rate approaching 25% in January 2024
• Expected to exceed 25% retention in February 2024
• Implementation of advanced subscription conversion platform

Negative

• None.

Insights

Product Strategy Analyst

The latest metrics from Auddia reveal a compelling growth trajectory in user retention for their faidr platform. The consistent improvement in 30-day retention rates - surpassing 20% in Q4 2023 and approaching 25% in early 2025 - signals strong product-market fit and effective user engagement strategies. For context, these retention rates are particularly significant in the audio streaming space, where typical 30-day retention rates for new apps often hover around 15%.

The integration of an advanced subscription conversion platform represents a important pivot toward monetization. This strategic enhancement enables sophisticated A/B testing of pricing models, messaging optimization and customized offering combinations - essential capabilities for maximizing Average Revenue Per User (ARPU). The timing of this platform launch, coinciding with peak retention metrics, demonstrates a well-orchestrated progression from user acquisition to monetization.

However, investors should note several key considerations: First, while improved retention rates are encouraging, the critical metric will be the conversion rate from retained users to paying subscribers. Second, the promise of subscription revenue guidance at the end of Q1 suggests a cautious, data-driven approach to revenue projections. Given Auddia's current market cap of $2.3 million, even modest success in subscription conversion could significantly impact the company's valuation.

The sequential improvement in retention metrics, combined with the new subscription platform, positions Auddia to potentially capture higher value from their user base. However, the true test will be the subscription conversion rates and revenue figures expected to be revealed in the Q1 guidance.

faidr 30-day retention continues to build

Upgraded subscription conversion optimization platform launched last week

Subscription revenue guidance to be reported end of Q1

BOULDER, Colo., Feb. 10, 2025 (GLOBE NEWSWIRE) -- Auddia Inc. (NASDAQ: AUUD) (NASDAQ: AUUDW) (“Auddia” or the “Company”), a technology company that has built a proprietary AI platform for audio identification and classification to reinvent how consumers engage with audio, today announced that 30-day user retention metrics are continuing to build.

Auddia reported acceleration of faidr 30-day retention to over 20% in October and finished the year with each month in Q4 over 20%. January retention continued to build to just below 25% and February is expected to be the first month to surpass 25%.

Last week Auddia completed integration into faidr of an advanced subscription platform in support of executing an advanced subscription conversion and revenue optimization strategy.

“We continue to see positive momentum across all stages of the retention funnel as a result of our ongoing product and marketing optimization improvements,” said Theo Romeo, Auddia’s Chief Marketing and Product Officer. “As these product and marketing optimizations continue to bear fruit, we are now in the early stages of adding subscription conversion optimization strategies to the mix. This began in earnest last week when we completed the integration of an advanced subscription conversion platform into faidr. This platform gives us the ability to dial in the best combination of pricing, messaging, and offerings to optimize subscription conversions and revenue. We expect to see subscription conversion metrics follow a similar positive trajectory to the one we have been demonstrating for 30-day retention.”

The Company reaffirms that at the end of Q1 it expects to provide further guidance on how subscription revenue may build over the year as product, marketing, and subscription conversion optimizations continue to drive results.

About Auddia Inc.
Auddia, through its proprietary AI platform for audio identification and classification, is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content. Auddia’s flagship audio superapp, called faidr, brings multiple industry firsts to the audio streaming landscape that include:

• subscription based, ad free listening on any AM/FM radio station
• content skipping across any AM/FM station
• one touch skipping of entire podcast ad breaks
• subscription based, ad free listening to podcast partners

faidr also delivers exclusive content and playlists, and showcases exciting new artists, hand-picked by curators and DJs. For more information, visit: www.auddia.com

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as well as other disclosures contained in the Annual Report and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations:
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
www.pcgadvisory.com

FAQ

What is Auddia's (AUUD) current user retention rate for faidr?

Auddia's faidr platform achieved over 20% 30-day retention throughout Q4 2023, reached nearly 25% in January 2024, and is expected to exceed 25% in February 2024.

When will Auddia (AUUD) provide subscription revenue guidance?

Auddia plans to provide guidance on subscription revenue growth by the end of Q1 2024.

What new platform has Auddia (AUUD) integrated into faidr?

Auddia has integrated an advanced subscription platform that allows optimization of pricing, messaging, and offerings to maximize subscription conversions and revenue.

How has Auddia's (AUUD) user retention rate improved over time?

The retention rate improved from over 20% in October 2023, maintained above 20% throughout Q4, reached nearly 25% in January 2024, and is expected to exceed 25% in February 2024.